Does Business Interruption Cover Taxes?
Sometimes—a business-income policy may include taxes that continue during a covered shutdown, but its definitions and loss calculation determine which tax bills qualify.
That summary does not establish that every tax bill is reimbursed. Forms can distinguish expenses that continue from those that vary with sales, and the payment remains tied to a covered interruption and the policy’s calculation of business income.
Review the form’s covered-expense language and ask how payroll, property, sales, and income taxes are treated. Check the waiting period, limit, period of restoration, and documentation requirements. Tax obligations continue under tax law independently of insurance; confirm any tax-payment question with a tax professional and avoid counting a tax as insured solely because it appears in a general example.
Coverage Guides Related to Commercial Property Insurance
Sources for This Answer
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; Commercial property; Business interruption; Contingent business interruption. Accessed 2026-09-25.
- FAQ on business interruption insurance and other issues affecting California small businesses. California Department of Insurance; Business interruption trigger; COVID-19 income loss; policy exclusions; civil authority. Accessed 2026-09-25.
- Commercial Property and Business Income Coverage Forms in SES sample policy. Insurance Services Office, Inc.; sample hosted by SES Insurance; CP 00 10 10 12, printed pp.1–16 / PDF pp.7–22: A.1 Covered Property, A.2 Property Not Covered, E.1.b Property of Others, E.1.e Outdoor Property; CP 00 30 10 12, printed pp.1–9 / PDF pp.22–30: Business Income definition, trigger, coinsurance and restoration period. Accessed 2026-09-25.